“But the Devil Is in the Details”: Pro-XRP Lawyer Reacts to New U.S. Congress Bill to Regulate Crypto
Since Ripple and XRP’s victory against the United States Security and Exchange Commission (SEC) on July 14th, the US Congress has been diligently working to establish a regulatory framework for the crypto industry in the country. The ruling by the SEC deeming XRP as a digital asset was seen as a significant milestone for Ripple, and it has stirred the Congress into action.
Representative Mike Flood had previously praised Ripple’s victory against the SEC, calling it a wake-up call for Congress to step in. Now, a new bill titled “The Financial Innovation and Technology for the 21st Century Act” has been introduced by Glenn Thompson, French Hill, and Dusty Johnson, aiming to regulate the crypto industry.
This news has received overwhelming support from the crypto community, who perceive it as a direct result of Ripple’s legal victory. John Deaton, the lawyer representing over 75,000 XRP holders in the lawsuit against the SEC, also acknowledged the importance of this move for the US crypto industry.
However, Deaton expressed caution in his response, noting that while the bill sounds promising, its contents need to be thoroughly examined before forming an opinion. He remained reserved until he had the chance to scrutinize the bill’s details.
Despite this cautious approach, the ruling declaring XRP as not a security has given Ripple and the entire XRP ecosystem a reason to celebrate. Stuart Alderoty, the Chief Legal Officer at Ripple, emphasized that as a matter of law, XRP is not classified as a security. Judge Analisa Torres also clarified that XRP sales on exchanges and by Ripple executives are not considered securities. Additionally, the distribution of XRP to developers, charities, and employees is also exempt from securities classification.
However, it is worth noting that the ruling did identify Ripple’s past sales of XRP to institutional investors as investment contracts, leaving some uncertainty in the case. Alderoty emphasized that this aspect requires further attention, implying that the case is not yet fully resolved. Nonetheless, the ruling can still be considered a victory for Ripple, as it provides a level of clarity and protection for retail investors against potential SEC actions.
Overall, the introduction of the bill to regulate the crypto industry in the United States indicates a positive step forward. While its specifics are yet to be examined, it signifies a recognition from the US government of the need for a regulatory framework to support the growth and development of cryptocurrencies. The outcome of this bill could have significant implications for the future of crypto regulation and the overall ecosystem.